“Some of the 50-states state AG’s seem to be following the federal lead against Mr. Schneiderman – and are pushing the old Hillary Clinton-Brian Deese-Rob Rubin “tort reform” idea to protect “responsible bankers”

Chris Mayer, one of the authors of the refinancing plan, a version of which is currently being considered by the administration, wrote in to the comments on an earlier post, protesting my characterization of his proposal. I have no argument with Chris about there being too many frictions in the refinancing process. I’m not sure that this is the best way to fix them, however, and I’m also puzzled by what problem the proposal aims to solve. Is the goal to stabilize the housing market or to provide economic stimulus?